RPSM11101070 - Technical Pages: Lifetime allowance: Level of lifetime allowance: The eight lifetime allowance enhancement factors

There are four broad circumstances where an individual’s lifetime allowance may be uplifted beyond the standard lifetime allowance, giving rise to various, specifically defined lifetime allowance enhancement factors.

In total, there are eight separate lifetime allowance enhancement factors defined in the legislation. These are as follows

• the pension credit factor,
• the pre-commencement pension credit factor,

See RPSM11101030 for more information about these enhancement factors

• the cash balance arrangement non-residence factor,
• the other money purchase arrangement non-residence factor,
• the defined benefits arrangement non-residence factor,
• the hybrid arrangement non-residence factor,

See RPSM11101040 for more information about these enhancement factors

• the recognised overseas scheme transfer factor (see RPSM11101050), and
• the primary protection factor (see RPSM11101060).

If an individual is entitled to a primary protection factor they cannot also have an entitlement to a pre-commencement pension credit factor as those pension credit rights are already factored in to the primary protection factor.